Senate Passes Joint Resolution; Long Weekend Break Expected to Produce Property Tax Legislative Accord

After a long week of negotiating without reaching a consensus on property tax reform during the fourth special session of 2007, the Florida Legislature has recessed until next week.

The House is scheduled to reconvene on Monday, October 22 at 3 p.m. and the Senate to do the same sometime on October 23.  Leadership from both chambers is expected to meet throughout the weekend to try and reach an accord.

Senate Joint Resolution 2D, which contains provisions endorsed by Governor Charlie Crist, today passed by 26-11 (24 votes are needed for passage). The Senate plan cuts $11 billion dollars from Florida’s budget over four years by:

• Doubling the homestead exemption.
• Providing portability by allowing homestead property owners to transfer their Save Our Homes benefit to a new homestead.
• Creating a 100 percent property tax exemption for qualified low-income seniors on the first $100,000 of a property’s value.
• Ensuring that property tax bills will not spike in the future by requiring the legislature to limit the authority of counties, municipalities, and special districts to increase property taxes.
• Providing new exemptions for first-time home buyers of up to 25 percent of the home’s value.
• Granting a new $25,000 exemption for tangible personal property.
• Requiring every county to elect its property appraiser.

Senate President Ken Pruitt remarked “Yesterday was one of my proudest moments as President of the Florida Senate. In an open forum, in a deliberative manner, and with spirited debate the Florida Senate passed a second wave of tax relief, adding $11 billion more in property tax cuts. We negotiated with the House of Representatives in good faith, and passed a plan that was in keeping the Special Session call – our signed agreement. Taxpayers can be encouraged that we are headed to the finish line.  While there are those who want more tax relief, and those who want less, I believe this is a tax relief package that voters will embrace on January 29 – because it will result in lower taxes without harming education.”

Pruitt added, “I am grateful to our Governor, Charlie Crist, who has made it his top priority to reduce taxes for the people of this state. Speaker Marco Rubio’s passion and energy have helped us get to where we are today; he has consistently advocated for those who are desperate for tax relief, and I am grateful to be his partner in this effort.”

A PowerPoint slide presentation of the SB 2D Floor Summary is attached for your review.

With House Bill 7001D, the House is seeking more aggressive tax cuts, which would include the current Senate plan, as well as provide a three percent cap on annual assessments for non-homestead property and possibly a one-cent sales tax increase to offset losses to school funding.

The long weekend is expected to provide a respite from negotiation, with the hope that next week’s deliberations will produce an agreement between the two chambers.

To read Miami Herald news coverage of today’s legislative procedings, click on the headlines below:

Crist: Senate property-tax plan good enough

Homestead amendment squeaks through Florida Senate

 

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